Here's how a stock can move higher, according to TheStreet's founder and Action Alerts PLUS Portfolio Manager Jim Cramer:

  • robust consumer
  • a big short position in the stock
  • sharply better-than-expected earnings per share

Cramer thinks Restoration Hardware (RH) had these factors, hence the stock's surge this week.

Want exclusive investing insight from Jim Cramer? Get 24/7 access to Jim's charitable trust portfolio with a free trial to Action Alerts PLUS!

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